Bankruptcy – second time around

You’ve been bankrupt once due to life circumstances – a job loss, a divorce, lack of knowledge about managing debt, or other issues. Once discharged from bankruptcy, you started to claim your life back, re-built your credit rating and acquired debt. Life is full of reoccurring challenges and you may find yourself dealing with serious financial issues again.

You may consider filing for bankruptcy a second time. You may recall from your previous experience that this will provide you with relief from amongst other things, collection calls. However, the rules are slightly different a second time around.

Firstly, it takes longer to be discharged from a second bankruptcy. You will be entitled to an automatic discharge 24 months from filing provided there is no surplus income. Surplus income is money earned over the government-set limits, which varies depending on your family situation. If there is surplus income the discharge will take three years. It is also important to know that you will be accountable to the Trustee for your income over this period and any assets you may receive (i.e. inheritance, lottery winnings, etc.).

Secondly, a second bankruptcy will remain on your credit report for 14 years from your discharge, rather than the six years in a first bankruptcy. That will make it difficult, though not impossible, to rebuild your credit again.

You have other options which a Trustee in bankruptcy will be able to assess as they review your financial situation. One such option may be a consumer proposal. This will allow you to keep your assets and will lessen the impact on your credit report.

When considering bankruptcy a second time, carefully evaluate whether it’s the best option given your set of circumstances. It is highly recommended that you consult with a Trustee in bankruptcy before deciding to file for a bankruptcy, second time around.

90 Responses to “Bankruptcy – second time around”

  1. catherine pyne says:

    when I went bankrupt in 1993 I was told my name was to be taken off my mortgage.This was not done registered unknown to me .IN 2010 I declared again telling them I had no interest in the home .This is how I found out .Now I am being accused of being dishonest how do I prove I am not lieing

    • kathy says:

      Good morning Catherine
      I am not sure as to what was explained to you at the initial bankruptcy filing, but a bankruptcy would not automatically remove your name from the mortgage. The mortgage company would be notified of your bankruptcy, but your name may have remained on the mortgage. The other concern to your Trustee would be if you were on title (as owner) of the property. I would recommend you discuss with your current Trustee and if you are unable to satisfy them of your situation, you should consult legal counsel.
      Regards
      Kathy Lenart

  2. Nathen says:

    Hello I was discharged july 2006 and recently paid off my capital one mastercard that went into the collection and was wondering what you think my chances are of getting a secured cretit card my gross income is about 50 grand a year now this is my second bankrupt .

    • kathy says:

      Hello Nathen
      Secured credit cards are typically easier to obtain as the issuing institution holds your funds to secure repayment of the credit card charges. If you are discharged, have saved funds to provide as a deposit on the secured credit card and have an income of $50,000, I would think your chances are pretty good. I do caution that every time you apply for a credit card and are rejected, you are negatively impacting your credit score.
      If you are successful in obtaining a secured credit card, charge your groceries and gas (regular monthly items you have the cash for) and pay off the card in full every single month. This will assist in rebuilding your credit score.
      Good luck
      Kathy Lenart

  3. Lindsay says:

    Hello,
    I am just curious about the length of time bankruptcy remains on Credit report. I was discharged for first bankruptcy November 2004 and Discharged from second July 2012. I understand that second time remains for 14 years, but am more curious about the my first and how long it will remain on my report. It is still showing and it has been almost 12 years! Is this due to my second bankruptcy? Because of the second one it then causes my first to remain for 14 years as well?
    I hope you can help me understand.

    Thank You!

    • kathy says:

      Hello Lindsay
      It is my understanding a first time bankruptcy remains on your credit report for 6 or 7 years from your discharge (depending on which reporting agency). Thus if you were discharged in November 2004, the bankruptcy should be removed. You are correct in a second bankruptcy will remain on your credit report for 14 years from discharge. I was not aware that a second bankruptcy would lengthen the time the first bankruptcy remains on your credit bureau. I would recommend that you contact the credit bureau directly and request the first bankruptcy be removed as the required time frame has lapsed. I would be interested to hear if they advise you differently.
      Regards
      Kathy Lenart

      • Lindsay says:

        Hi Kathy,

        I did speak with Trans Union who stated that due to the second bankruptcy it extends the first to 14 years! The agent supposedly confirmed that information on The Office of Superintendent of Bankruptcy Canada website. I, however, found the following on the same website:

        Impact of a bankruptcy on…

        your credit rating

        A person who declares bankruptcy is assigned the lowest possible credit rating (credit score).

        The information in your credit report that affects your credit score is usually removed after a certain period of time. The amount of time depends on the type of information and where you live. Generally, it will be removed after six or seven years for a first bankruptcy, and after 14 years for subsequent bankruptcies.

        Whether you can obtain credit after your discharge from bankruptcy will depend on your ability to convince lenders of your financial maturity and ability to repay the debt. There are no guarantees—no one is required to give you credit.

        What is your take on the above? I think I will still file a formal dispute via mail with both Trans Union and Equifax and include the information stated above.

        Thanks

      • kathy says:

        Hello Lindsay
        It was my understanding the terms of reporting a bankruptcy on your credit rating are set by the credit reporting agencies. There is nothing in the Bankruptcy and Insolvency Act, nor in directives issued by the Superintendent of Bankruptcy that states how long the reporting remains on your record. The above information is likely provided on the OSB site for information only. It can’t hurt to file a formal dispute.
        Regards
        Kathy

  4. Trish says:

    I really don’t understand what you mean by your last sentence in your statement after previous bankruptcy? Please explain. Thank you

    • kathy says:

      Hello Trish
      As you have a meeting scheduled with a trustee in bankruptcy, I recommend you let them explain the options and process with you. I do not have your full details as to income, expenses, assets and liabilities in order to analyze if, or how a consumer proposal may be affected by a prior bankruptcy. If you would not be required to make surplus income payments in a bankruptcy, the prior bankruptcy will likely have no effect on the amount you must offer in a consumer proposal.
      Regards
      Kathy Lenart

  5. Trish says:

    I live in Edmonton, Alberta. So what is the liquidation value, and the bankruptcy16 years ago, I am filing for a consumer proposal, they are different

    • kathy says:

      Hello Trish
      I did a quick search and I think the exemption amount for a vehicle is $5000 in Edmonton. It doesn’t matter how long ago the previous bankruptcy was, it still counts as a previous bankruptcy. The Trustee will have to analyze what would be available for your creditors in a bankruptcy and then will offer more to your creditors in a proposal.
      Kathy

      • Trish says:

        so, instead of 30% to pay back in a consumer proposal, I am getting penalized again, as I paid my dues, and suffered the consequences then, so I am punished again for a consumer proposal. Why?

  6. Trish says:

    I have an appointment to meet with Goth and Company, for a consumer proposal. I had a bankruptcy in year 2000 was discharged and no payments, bad marriage. Will this bankruptcy affect me? I owe only a car 2008 kia sportage, will I be able to keep my car, as its my only asset. I have a pension that I can’t touch until I am 65. Its a LIRA with the provincial government. Is that still safe?

    • kathy says:

      Hello Trish
      The Trustee you are meeting with will review your situation in detail and discuss options. A previous bankruptcy does affect the length of time that you would be required to make surplus income payments in a bankruptcy and thus will affect the amount you must offer your creditors in a consumer proposal. A vehicle is exempt up to a liquidation value of $6,600 in Ontario – I am not positive of the exemption amount in Edmonton. A pension is exempt, but your monthly pension income will be considered in formulating the proposal.
      Good luck
      Regards
      Kathy Lenart

  7. Debbie Beaupre says:

    This is my second bankruptcy, filed in 2013 my discharge date was suppose to be January 2016 get a letter two weeks before saying they oppose it due to surplus and I owe over 13,000 dollars. I just need to know what my options are

    • kathy says:

      Hello Debbie
      I suggest you contact your Trustee to discuss the calculation and amount outstanding. For a second time bankruptcy, the Trustee evaluates the income and expense reports that you submitted for the first 21-22 months of your bankruptcy and determines your monthly surplus income obligation based on the average for these months. This surplus income payment must be paid for a 36 month time period. At our office, we send a letter in the 23rd month advising of the calculation and amount outstanding and when the payments must be paid in order to receive your automatic discharge. If there are outstanding monthly reports, the Trustee may be able to amend the amount you are required to pay.
      If the surplus income is the only outstanding issue, your Trustee will schedule mediation which will provide the opportunity to negotiate a time period to pay the outstanding surplus income payments.
      Regards
      Kathy Lenart

  8. Cheryl Turner says:

    P.S. It was all unsecured credit card debt of 30,000 and my first bankruptcy was 25 years ago
    Thankyou again!!

  9. Cheryl Turner says:

    Hello,
    I just received my Discharge papers after a 2nd bankruptcy and my trustee stated as far as I’m concerned all is done and then they said they would send me a copy of receipts and disbursements and their discharge from being the trustee. I have no surplus income throughout the bankruptcy due to being on a government disability. A friend said that I am not discharged until the time period expires for the creditors to appeal absolute discharge. The trustee said they are not opposing the discharge. So how long is the appeal process. I finished the 24month period and paid all that I was to pay. Could you help..I thought once discharged its finished.
    Thankyou. Stressed out about this
    Regards

    • kathy says:

      Good morning
      I believe the appeal period is 10 days from the date of automatic discharge. In all the years that I have been in practice, I have never had a creditor or other party appeal a discharge. The Trustee should send you a copy of your discharge certificate.
      Regards
      Kathy

      • Cheryl Turner says:

        Thankyou Kathy
        Its 10 days past and have received my discharge papers, so its a done deal then. Whew, just was worried and you relieved my anxiety,
        Blessings for the new year!!

  10. Sandra says:

    Thank you Kathy,

    I thought that was the case for a second bankruptcy. Makes sense.

    Would you mind clarifying something for me…when you say “You can make an application to the Court to amend the conditions of your discharge one year after the order was imposed” is this one year from when I filed (2010) or from when I got the conditional discharge (2012) or from the most recent event where the trustee has discharged themselves from being my trustee? Are the Courts able to overrule the trustees decision of discharge based on the evidence that I might provide? I realize every case is different, just wanting to know whether that is a possibility?

    Will the trustee still speak with me regarding the outstanding conditions and my current financial situation to see if they would think this is a feasible solution based on the fact that they have removed themselves from being my trustee?

    Thanks again for your help…

    • kathy says:

      You can make an application 1 year from the date the order was issued by the Court (2012 per your notes). It is your application, so you would have to prove to the Court as to why they should amend the order. If the conditional order is for Trustee’s fees, my guess is the Trustee may oppose any change to the order. If it was a conditional order based on some other matters, the Court may make a change. To be honest, we do not see too many applications to the Court due to the cost involved (legal fees). The Trustee should still speak to you even though they are discharged.

  11. Sandra says:

    Just wondering – I filed bankruptcy back in 2010 and got a conditional discharge in 2012. Since then I have not been able to pay the amounts required to get my full discharge. I live with my daughter whom was also part of the original bankruptcy and she has thankfully been able to receive a full discharge. My trustee last month filed and released themselves from being my trustee which is now supposedly opening this back up to my creditors. I received in the mail last night one creditors statement of what I supposedly currently owe. I never received a full discharge, am I able to claim bankruptcy again when I am not discharged from the first one? AND – will I need to find my own apartment so as not to impact my daughters income again? Any feedback is appreciated. I have heard your ads on the radio.

    • Sandra says:

      Just realized I misspelled the email address…

      • kathy says:

        Hello Sandra
        Unfortunately you must obtain your discharge from the first bankruptcy – you are not able to file a second bankruptcy until you are discharged. You can make application to the Court to amend the conditions of your discharge one year after the order was imposed. I recommend you speak to your Trustee about the outstanding conditions and your current financial situation to see if they think this is a feasible solution. The Trustee would not make the application for you, you would likely have to obtain legal counsel in order to make an application to the Court.
        Regards
        Kathy

  12. Derek Keys says:

    I was made bankrupt some 14 / 15 years ago and now I think that two of the banks declared are claiming payment
    of the debt. I am wondering if you might be able to tell me how I can get the details of my bankruptcy.
    Many thanks D.keys

  13. Aviator says:

    Due to life circumstances, I had to file for bankruptcy.
    Most of my debt was to CRA. I had gone through a divorce and the family court was brutal to me. I was paying a hefty sum every month and yet my income was average. I had to file as I had been receiving numerous threats from Rev Canada for taxes unpaid.

    Not thinking, and I as I know now, it was a temporary relief as the circumstances I was in remained. Paying out more than I can afford. My bankrupcty became undischarged as I was unable to meet the terms of the discharge – pay up all outstanding debts since the bankrupcty had been approved. This was 2 years and counting of mounting debt.

    I am in trouble again.

    My support obligations from family court have been drastically reduced now but the damage has been done.

    Do I have any options? 🙁

    • kathy says:

      Hello
      Before we can begin to review your current situation and discuss options, you must deal with the discharge from your first bankruptcy. I recommend you speak to the Trustee to determine exactly what the outstanding items are and then speak to an insolvency lawyer about your options. You may need to apply to court to amend the terms of discharge of the first bankruptcy.
      Regards
      Kathy Lenart

  14. Ion says:

    Thank you for replay. That mean I will have to rethink abot bankruptcy as an option.
    Thank you

  15. Ion says:

    Hi,
    I am retiring and I have once filled out for bankruptcy, I own a condo and two cars. Initially I was hoping that I will sell condo and I will recover the money to pay off one car and to resell it. With the money from resell to cover my other deaths and to retire clean only with one car to pay and the rent for one apartment. I have my condo for sale but nothing is selling here where I live, Yellowknife. My pension will be half of what I get pay as full time job, if not lower. What are my options in this case? I will not be able to pay the mortgage, bills and food here in north.
    Thank you,
    Ion

    • kathy says:

      Hello Ion
      I would recommend you meet with a Trustee in your area to discuss your options. It may be best for you to continue to try and sell your condo until the bank takes proceedings to sell under their security agreement. I would also call your realtor to obtain a realistic selling value for the condo so you can determine if there is any equity in the condo. You may also want to try and sell one of the vehicles now to reduce your monthly payments – the secured bank would have to authorize you to sell the vehicle if they were insufficient proceeds to pay them in full.
      Good luck
      Kathy Lenart

      • Ion says:

        Thank you for your replay. I like to know if you decide for second time bankruptcy; does the trustee take the family vehicle from you? Or you have possibility to keep one vehicle…

      • kathy says:

        Hello Ion
        In Ontario, there is an exemption for one vehicle up to a liquidation value of $5630. If your vehicle is worth less than this amount, then you will be able to retain in a bankruptcy.
        Regards
        Kathy

  16. m says:

    Thank you for your insight Kathy, much appreciated.

  17. m says:

    Hello,
    I’m contacting on behalf of a family member i am trying to help out.

    Basically they had started the process of bankruptcy in 2010, but simply did not pay to completion over the 21 months. THe discharge status is sitting as “adjourned” according to the office of the superintendent of bankruptcy.

    If you have any advice as to what the options are, that would be great.
    Basically wondering the following questions:
    a) Does that family member need to start the process over again?
    b) is there a statute of limitations for adjourned court cases for bankruptcy?
    c) if they are now below the threshold for surplus income, how would that factor in?

    thank you,
    m

    • kathy says:

      Hello M
      To start, I would recommend your relative contact the Trustee in bankruptcy that they originally filed with in 2010 to determine what their outstanding duties are in order to obtain their discharge. If your relative is now able to complete the outstanding duties (which may just be payments), the Trustee will either proceed to obtain your relative’s discharge from bankruptcy or refer them to a lawyer to obtain their discharge.
      The family member can not start the process over – they must obtain their discharge from the first bankruptcy.
      There is no statute of limitations for adjourned cases for bankruptcy.
      If your family member was required to pay surplus during the initial 9 or 21 months – the fact that they are now below the threshold will not change the calculation at that time. The Trustee does not have the discretion to lower that amount based on current earnings. I would recommend you speak to a lawyer if you are seeking to lower the surplus income payments in order to obtain their discharge.
      Regards
      Kathy Lenart

  18. Leanne says:

    Hello,
    I have made a really really stupid decision and don’t know what i can do about it. I was discharged from my bankruptcy and needed a vehicle. I let a “bad credit” car loan company talk me into a new vehicle. I am having extreme panic attacks as i know that this is wrong – is it too lat to do something about it or do i have to continue with a payment that I cant really afford? What are my options?

    • kathy says:

      Hello Leanne
      Your options will depend on how long ago you signed the car loan and the terms. I recommend you review the loan agreement and speak to a lawyer. If a lawyer is unable to assist, I would be happy to meet with you to discuss other options for dealing with the car loan – a bankruptcy or a consumer proposal.
      Regards
      Kathy Lenart

      • Leanne says:

        Just signed the papers and took possession I know its a huge mistake. Should I see a bankruptcy lawyer or some other kind?

      • kathy says:

        Hello Leanne
        There may be an escape clause in your contract – I would recommend you contact a lawyer immediately. You would need a lawyer familiar with contracts – not necessarily bankruptcy.
        Good luck.
        Kathy

  19. Pat says:

    12 Years ago I filed bankruptcy due to a divorce and 9 months later I was discharged. I am now wanting to file for a consumer proposal due to loss of job, and left a very abusive man of 8 years. At the time I declared bankruptcy that I hired a trustee to do my bankruptcy, and when I appeared in court, the trustee I hired advised the Judge that I went to Bahamas and was trying to get me to pay a penalty, I thought he was suppose to represent me not go against me. Hard to trust that, especially when he did not ask me at all about that trip. I never had to pay back a dime as I was under a lot of stress. Why would he not confront me prior to the court day? Does he work for the court and not me? I realize he is governed under the government, but that is not my question.

    • kathy says:

      Hello Pat
      A Trustee is an Officer of the Court and is acting for the general benefit of your creditors. Even though you are the one to initially “select” a trustee to file your bankruptcy, they are not working for you and do not represent you at the discharge hearing. That being said, you have no option but to file an assignment in bankruptcy or consumer proposal with a Trustee. A Trustee has a duty to ensure you understand the process and typically would consult with you on any issues prior to bringing to the Court’s attention. Obviously, I am unable to comment on your specific circumstances without knowing all the details and history.
      Good luck with filing your consumer proposal. There are a lot of Trustees – make sure you are comfortable with the one you decide to file with.
      Regards
      Kathy

    • Pat says:

      Thank you for replying. With a consumer proposal do you have to go to court, and if you go with a consumer proposal does the trustee have to advise my creditors that I had a bankruptcy 12 years ago, and do they frown upon you being in financial stress/relief again. My most debt is with Scotia Bank, are they cooperative with your experience, my debt is 88000.00. Thanks

      • kathy says:

        There is a provision under the Bankruptcy and Insolvency Act for court review of a consumer proposal – but typically does not occur. The prior bankruptcy must be reported on your Statement of Affairs that is signed by you. The creditors understand that financial difficulty occurs and will evaluate your proposal based on your debt, income, ability to pay and % of debt recovered. Scotiabank are fairly responsive to a proposal but may be looking for a recovery of around 25% of their debt. If you are in the Hamilton, Burlington, or St Catharines area, I would be pleased to meet to discuss in detail.
        Regards
        Kathy

    • Pat says:

      Okay thank you, Sorry I have another question, what if you recently got help from a easy loan and on there it states if I declare bankruptcy they would be opted out and I still would have to pay, does that apply to a consumer proposal? If Scotiabank is asking for 25% does that mean they all want 25% too, or they all put there request in of what percentage they want back and the trustee then compiles and comes up with an interest ratio?

      • kathy says:

        The Trustee would review your situation and look at what is a reasonable proposal to your creditors. Your creditors may be willing to accept a lower % based on your personal situation. A creditor can not opt out of a bankruptcy or a consumer proposal based on their agreement – the legislation states includes all debt.

    • Pat says:

      As I am in good standing with my car loan Canada Trust Bank, and my car is almost done payments, and I had never missed not one payment, if I file for a consumer proposal, will this hurt my repor with them?

    • Pat says:

      okay thank you. The only thing holding me back from going forward with a consumer proposal is that I am wanting my car paid for in full, as I don’t want to lose my vehicle its my only way of transportation to and from work, and its almost paid for come this September.
      Do you think I should wait or?

      • kathy says:

        It is not necessary for you to wait – you can continue your car loan during your consumer proposal. It may be best to consult with a Trustee now so you are aware of the process and potential amounts.

    • Trish says:

      Please advise I am currently living with my son, they are moving into a new home in October, therefore, I will be getting my own place in October 2015, I babysit and pay only 500 a month currently, so when I move to my own place, my cost of living will increase to 1500 a month + as my rent, etc will have increased. If I apply for a consumer proposal now prior to October cost of living increase how will be affected?

      • kathy says:

        Hello Trish
        In your initial assessment to review your financial situation and options, we would review your monthly income and expenses. We would also take into consideration the significant increase in your living costs effective October to determine if a consumer proposal is feasible in that you will be able to continue to make the monthly payments. An increase in rent does not affect surplus income payments which typically drives the amount of your consumer proposal, but we would want to make sure you are offering a proposal that you will be able to afford throughout the whole term of the proposal. I would be happy to meet with you to discuss further.
        Regards
        Kathy Lenart

      • Trish says:

        Please advise, I owe 75,000 in debt, but I want to continue paying my car off as it is a secured debt and the vehicle is valued no more than 5000. I had a bankruptcy in 12 years ago, how will this effect me either in a consumer proposal or bankruptcy?

      • kathy says:

        Good morning Trish
        You are able to continue a secured car loan in both a bankruptcy and a consumer proposal. As long as the equity in the vehicle (value above secured debt) is less than $5300 than the Trustee has no interest in your vehicle. Since you have been bankrupt previously, if your income exceeds a threshold set by the Superintendent of bankruptcy, you would be required to make surplus income payments for a period of 36 months in a bankruptcy. This calculation would also affect the amount you would have to offer to your creditors in a consumer proposal.
        A second bankruptcy remains on your credit rating for 14 years from discharge and a consumer proposal would remain for 3 years from completion of the proposal.
        I would be happy to meet with you to discuss further at your convenience. Please call my office at 905-523-0003 or 1-888-287-2525.
        Regards
        Kathy Lenart

  20. aman says:

    Hi I own a third share of a condo that is rented and has negative equity the other 2 share holders are mom and brother can I surrender my share only and get out of mortgage? Just wondering got 6 kids and pay child support for 4 pretty challenging situation I find myself in (3 are triplets) just getting ideas trying to shape future financial life thank you.

    • kathy says:

      Hello Aman
      I would need more details in order to attempt to answer your question:
      Is the mortgage currently being paid? by whom?
      Are your mother and brother able to refinance the mortgage in their names only?
      Are they planning on continuing the mortgage payments?
      Do you have other debt?
      I would recommend you contacting our office at 905-523-0003 to discuss further.
      Look forward to talking to you soon.
      Regards
      Kathy

  21. Tanya says:

    Hi there,

    I’ve filed for bankruptcy last May 2014 for a second time. I’m now in a position where I’d like to sponsor my soon-to-be spouse. I understand from various websites that an undischarged bankrupt cannot sponsor a spouse or family member until officially discharged.

    If this is indeed the case, is there any way around this? Could one speed up surplus payments in hopes of an early discharge? Are there any special circumstances where someone could still sponsor a spouse with an undischarged bankruptcy?

    Many thanks in advance for your response to my questions.

    • kathy says:

      Hello Tanya
      It is my understanding that an undischarged bankrupt can not sponsor an individual and I am not aware of any special circumstances. The standard discharge period for a 2nd bankruptcy with surplus income payments is 36 months. Paying the surplus earlier will not entitle you to an earlier discharge. You could make an application to the court for a discharge hearing and request an earlier discharge but this typically does not happen. If your circumstance have improved, you may want to consider filing a consumer proposal to your creditors. If the proposal is accepted, your bankruptcy would be annulled. I believe you can be a sponsor while completing a consumer proposal, but you would want to verify this.
      Good luck
      Kathy Lenart

  22. wanda says:

    if 2 nd time in bankruptcy do they keep your income tax for 1 year or 2 years ??i file in aug 2013

    • kathy says:

      Hello Wanda
      Your Trustee will retain your income tax refund for the year of bankruptcy (2013) and any years prior to 2013 (if you had not already filed and received prior to your assignment in bankruptcy).
      You would file your 2014 tax return and are entitled to the refund. Your GST cheques will be sent to your Trustee until you are discharged.
      Regards
      Kathy Lenart

  23. Susan says:

    Hi,
    I am about to file a second bankruptcy in less than a week…I have filled out all the forms and provided all the information they require and keep answering all the questions they have…My question is this: the majority of the debt is from a failed business venture(sole proprietor construction company, we have nothing in assets except a pick up truck which my husband uses for his job as a home inspector (a pick up is required to carry ladders and tools)The truck is newer however is in need of repairs and has over 225000kms on it…the trustee I am dealing with said that it is worth more than I paid for it 2 years ago and said if I wanted to keep it I would have to pay $563 a month for 2 years for the equity in it. I know what the truck is worth as I had it appraised but he said that he may not use the appraisal?? He is using a black book price for a pristine condition, low km truck like mine…is this proper practice? Also because the pick up is required for work, can it not be in part considered a tool of the trade? Anywhere you look up online what is needed for a home inspection business it clearly states a pick up truck (preferably late model as a big part of the business is appearing professional) showing up in a rusted out 15 year old truck is not recommended…However this particular trustee said that a truck is not required to do the job and that’s that…what can I do? I have supporting documents that say otherwise on both the need for business/work purposes and the value. Would another trustee possibly have a different view?
    Thanks for your time.

    • kathy says:

      Hello Susan
      I apologize for the delay in replying – I have been away from the office. I would recommend you obtain a second opinion from another Trustee. At our firm, we initially use a black book value based on km to determine the value of a vehicle. If an appraisal is provided – this is better evidence of the value of the vehicle and we would use this value instead.
      If your husband is an employee and his employer provided a letter that his vehicle was required to perform his work (not get back and forth to work) we would accept the claim as a tool of the trade and allow the exemption.
      I would be happy to meet with you to discuss further.
      Regards
      Kathy Lenart

  24. rick says:

    I want to know if you are allowed to buy and own property after a 2nd bankruptcy

    • kathy says:

      Hello Rick
      Once you are discharged from your bankruptcy, you are free to buy and own property in your name. I would not recommend buying property in your name prior to your discharge as it could be considered an after-acquired asset that the Trustee would have to realize on.
      Regards
      Kathy

  25. karen says:

    Hello,

    I am 2nd time in bankruptcy but own my own home we want to sell to buy something less expensive we would have aprox $35,000 in equity.Is there companies that will finance we will be discharged dec 2014. thank you

    • kathy says:

      Hello Karen
      I recommend you speak to your Trustee in bankruptcy because you may not be in a position to sell your house if you are not discharged and have not settled with your Trustee on the equity in the house.
      There are places that will finance to an undischarged bankrupt but the interest rates may be very high due to the implied risk. I recommend you speak to your current mortgage holder first to see if they are willing to work with you.
      Good luck
      Kathy

  26. natalie says:

    if i go for second bankruptcy do i go for court..

    • kathy says:

      Hello Natalie
      A second time bankrupt can receive an automatic discharge (and thus avoid going to court) if you comply with all your duties (i.e. attend counseling sessions, provide monthly budgets, pay fees) and no creditors oppose your discharge. I would be happy to meet with you to discuss your finances in detail and explore options.
      Regards
      Kathy

  27. Sheila says:

    My husband and I are going through credit councling ,years ago we both went bankrupt before we had gotten together,my question is I have a mortgage from my past that it now haunting me,because when I went bankrupt the house wasn’t put up and my lawyer at the time told me that my name would be taken off the mortgage so after we started going through credit councling I started getting calls from the bank ,my question could we turn the credit councling into bankruptcy so that way my name will get cleared from the old mortgage my ex still has the house but from time to time he doesn’t pay for months and they call me for the money,need help with choices stuck in the middle and don’t know what to do

    • kathy says:

      Hello Sheila
      I recommend that you speak to a lawyer and provide them the details of the date of your bankruptcy, whether you made any further mortgage payments after that date and if you signed any mortgage renewal documents after that date. A lawyer will advise you if you are still responsible for the mortgage. I then suggest you speak to a local Trustee in bankruptcy that can analyze your whole financial situation and provide options to deal with your debt obligations.
      Good luck
      Kathy

  28. Monica says:

    Hello,
    I am inquiring about life after a second bankruptcy. I went bankrupt in 2000 following a marital breakdown. At that time I was a single mom putting myself through nursing school. The trustee I dealt with advised me to contact my student loan holders to ensure I would be able to continue receiving my funding to finish my program, as I was not receiving support and only working part time while in school. The rep I spoke with at the student loan office assured me I could, it was approved on a case by case scenario, so I proceeded with the bankruptcy. I did receive approval for my next student loan, but when I tried to cash it to register it was declined because you can’t qualify after you have just declared bankruptcy.

    I managed to get help thankfully from TSD in order to finish the program out. I received my discharge at the normal 9 months, and began repairing my credit. If you recall this was the transition time from the banks to the National Student Loan Center. Unfortunately for me when they sent me my monthly payment requirement they had “misplaced” one of the smaller loans without anyone’s knowledge. I continued paying the required monthly payments and building credit until I applied for a car loan 2 years following. Surprise! I had a student loan showing in collections. Unfortunately until it could be paid in full they would not do anything for me. In 2008, 7 years after discharge at 36 years old, I suffered a stroke, and was left permanently disabled. My health was very unstable in the beginning, and I worried constantly how my loss of salary, or my life would leave my second husband and family financially.

    In 2009,I went for financial advisement of what I should due in regards to my outstanding student loans, my only debt remaining other than a few hundred dollars on a Visa. They explained that I could file for a second bankruptcy as it had been more than 7 years since I attended school. I of course, did as they advised…stupid, your loved ones are not responsible if you pass away anyway. Once again went through the necessary steps, 24 months, an appearance in court and I received my discharge as of June 2011. Unfortunately after all this time only my federal loan has been cleared as there is a discrepancy with my End of Study Date, because of the student loan I tried to cash that got rejected. Since that time my rep and Trustee have been dismissed, and a new rep from the bankruptcy agency is working on getting the study date corrected with the SLSC. At that time NB has assured me they will discharge my loan and stop seizing my GST and tax refunds, but things with the SLSC take time, right? I have somehow managed to secure a new Mastercard and a loan with a finance company, but my question is will I ever be considered for credit from a prime lender again?

    I would like my family to have our own home again. I know, “If it wasn’t for bad luck I would have no luck”,so the saying goes. Still try to have a sense of humour. 🙂 Any light you can shed would be greatly appreciated.

    Thank you, Monica

    • kathy says:

      Hello Monica
      I am glad to hear you have kept your sense of humour throughout all the hardship you have encountered. It sounds like you have the right attitude.
      It will take time and obviously depend on the financial institution’s credit granting policies and your personal situation at the time (ie income source), but you should be able to rebuild your credit to obtain future financing. You have taken a couple important steps by obtaining a mastercard and loan. You should be cautious of the interest charges you are incurring. We typically advise that you use your credit card for the basics (ie food, gas, etc) and then pay the bill on time, in full, every month. These expenses are typically worked into your monthly budget so the funds are available and you are simply charging to rebuild your credit. After you have used the card for 1 – 2 years, I recommend you speak to your bank manager to see if they can offer you a credit card with a low limit.
      Good luck
      Kathy

  29. Patrick says:

    How would anyone know if I have been bankrupt before if it is off my credit file for several years?

    • kathy says:

      Hello Patrick
      A permanent record of all bankruptcy filings is retained by the Office of the Superintendent of Bankruptcy. A search of their records would report your bankruptcy filing even if it is removed from your credit bureau.
      Regards
      Kathy

  30. Holly Millett says:

    If I go bankrupt for the second time, will it take me forever to establish enough credit to be approved for a mortgage? I was discharge from my first bankruotcy in 2003. I have no foreclosures in my credit history.

    • kathy says:

      Hello Holly
      It will take a while to rebuild your credit rating to be eligible for a mortgage. A second bankrutpcy will remain on your credit report for 14 years from your discharge. The important thing is for you to take pro-active steps to rebuild your credit as soon as you are discharged. A secured credit card that you use on a monthly basis for basics like groceries and gas and pay every month is a good start. Your eligibility for a mortgage will also depend on your employment, monthly income and the amount of your down payment. The other consideration you have to think of is if you struggle to pay your debts for the next 10 years or so, where will you be at the end of that time? Debt free or still owing considerable debt that may make you ineligible for a mortgage anyway.
      would be pleased to meet with you to analyze your situation and weigh your options.
      Regards
      Kathy

  31. bonnie says:

    I am considering declaring bankruptcy for a second time. I am unemployed and I will be essentially homeless at the end of the month. I am leaving an abusive relationship and I feel like I am drowning. I need some help/advice.

    • kathy says:

      Hello Bonnie
      Thank you for reaching out to us. I would be happy to meet with you to discuss your financial situation and options that may help you with your debt. It sounds like you have a lot on your plate right now and need to seek assistance. Please call my office at 905-523-0003 and we can set up an appointment that is convenient for you.
      Take care
      Kathy

  32. Ray says:

    I was not discharged from bankruptcy, I owed the trustee 1600$ yet, what options do I have in regards to this bankruptxy rather than file for a second bankruptcy?

    • kathy says:

      Hello Ray
      I recommend you contact the Trustee who handled your bankruptcy and see if you can make arrangements with them to pay the balance owing and obtain your discharge. Filing a second bankruptcy at this time is not an option as you can not file a second bankruptcy until you are discharged from the first bankruptcy.
      Regards
      Kathy

  33. Chris says:

    I’m considering a 2 nd bankruptcy but im still not discharged from first one because I owe 30,000 in surplus. I just can’t do all these surplus payments, I need a new car and I owe friends about 5000 now this is not the way I wanted this to go . Any advise to give?

    • kathy says:

      Hello Chris
      I recommend you contact the Trustee that administered your bankruptcy. If your discharge hearing was adjourned sine – then you may be able to request another discharge hearing and address the surplus outstanding. If a conditional order was issued – you can make application to Court after a year to amend the conditions imposed.
      I do caution that the Court will not sympathize with your need for a new vehicle or that you have debt owing to friends.
      Good luck Chris.
      Kathy

  34. Shannon says:

    I am unsure if this is a Canadian site or not but I will ask. I have in the past 6yrs ago filed for bankruptcy after my divorce. Now after clawing back up I am extremely sick and have been on disability for a little over a year with no change in site. I guess my main concern is my car. It is blackbook listed around 2400.00 in top condition less than 1000.00 for not perfect. Would I lose my car? I have no other assets as I rent. I require the car for Dr apts and general getting around.
    Thank you
    Shannon

    • kathy says:

      Hello Shannon
      Taylor Leibow Inc is located in Hamilton, Burlington and St Catharines, Ontario. There is an exemption for a vehicle up to a liquidation value of $5,650 in a bankruptcy. So as long as the vehicle wasn’t used as collateral for one of your loans, you would be able to keep your car in a bankruptcy. Depending on your income, a consumer proposal may be a viable option as well – I would be pleased to discuss your situation further.
      Regards
      Kathy

      • Amanda says:

        Hi Kathy

        I am in Hamilton ontario. I been bankrupted onced been discharged for a few years now maybe more. My question is who should I go too I m thinking of a second bankruptcy. I am 35000 in debt. I am behind on my car payments I want to be able to do this without losing my vehicle as i need it to commute for work. I looked into consumer proposal, but I don’t think I want to go with that. Can you help with any suggestions and where to go.

        Thank You.

        Amanda.

      • kathy says:

        Hello Amanda
        I would be happy to meet with you to discuss your current financial difficulties and solutions that may help you. I am a licensed insolvency trustee and can file a bankruptcy or consumer proposal for you should you decide to proceed that way. Please call my office at 905-523-0003 and set up an appointment at your convenience.
        I look forward to helping you soon.
        Regards
        Kathy Lenart

  35. Kim LeQuesne-Dashwood says:

    |I have filed for bankruptcy in the past, now I find myself being sued in civil court, if I should lose this, can it be include in a bankruptcy, and reading this I am wondering if maybe a consumer proposal might be a better choice. thank you Kim LeQuesne-Dashwood

    • kathy says:

      Hello Kim
      If you unfortunately lose in civil court, the debt can be included in a bankruptcy or a consumer proposal as long as it is not a S178 debt that survives a bankruptcy (ie fraud, misrepresentation, support, etc). I would be happy to meet with you to review your situation in detail and explore all options that may help you.
      Regards
      Kathy Lenart

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